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In: Economics

A small publishing company decides to use one section of its plant to produce two textbooks...

A small publishing company decides to use one section of its plant to produce two textbooks called Microeconomics and Macroeconomics. The profit made on each copy is $12 for Microeconomics and $18 Macroeconomics. Each copy of Microeconomics requires 12 minutes for printing and 18 minutes for binding. The corresponding figures for Macroeconomics are 15 and 9 minutes respectively. There are 10 hours available for printing and 10.5 hours available for binding. How many of each should be produced for maximize profit?

Solutions

Expert Solution

Maximize: 12x+18y

subject to
12x+15y<=600
18x+9y<=630

plotting and carrying out the corner point analysis, Max profit is when x=18.75 and y =32.5
The lines for plotting are 12x+15y=600, 18x+9y=630. The region within both these lines are the only feasible region as the constraint is such. Therefore, maximum is possible at the corner points (intersection).

Rahul Sunny answered 1 year ago
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